Stick to your spots

Each of us, through experience or study, has built up useful knowledge on certain areas of the world. Some areas are understood by most of us, while some areas require a lot more specialty to evaluate. 

It is important to honestly define what we know and stick to those areas. 

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If you want to improve your odds of success in life and business then define the perimeter of your circle of competence, and operate inside. 

The concept has been used by Warren Buffett and relates to the importance of  honestly definining what we do know and to stick to those areas....

Charlie Munger once commented that "in order to disagree with somebody you must first understand their argument better than they do."

The most common way people lose money is to overestimate how clever they are and how much they know. Even after a fifty-year investing career, both...